A recently published report by DSR Data has revealed the Adelaide suburbs that house hunters should be wary of, as well as the hidden corners where savvy buyers and investors can pick-up a real estate bargain.

Norwood, steals the spotlight as the state’s most undervalued suburb, boasting an attainable median unit price of $422,000. This presents an attractive opportunity for both first-time homebuyers and astute investors alike. Following closely is Glenunga, with houses priced slightly above $1 million. Plympton, along with Westbourne Park and Rosewater, completed the list of top suburbs with promising buying prospects for units and houses respectively.

These undervalued suburbs are categorised as such, due to their history of sluggish growth. However, recent surges in demand indicates notable signs of improvement. This signifies the potential for rapid capital growth in the near future, for those willing to seize the opportunity while these areas still offer great value for money.

On the opposite end of the spectrum, the report advises caution to buyers and investors contemplating houses in Craigburn Farm. With a median price of more than $1.14m, these properties claim the title of the state’s most overvalued. Similarly, houses in St Mary’s, Oakden, Clarence Gardens and Blair Athol are also featured on the state’s top five most overvalued list.

These suburbs are considered as overvalued due to their steep price increase over a short period, surpassing the cost of comparable homes in neighbouring areas. Moreover, the increasing supply in these suburbs is starting to outweigh the demand, indicating a potential decline in prices is on the horizon.

While these undervalued areas present an alluring opportunity for investors seeking short-term gains, buyers should not necessarily be put off purchasing properties on the overvalued list. As for those who plan to retain their investment for the average period of seven years, can still anticipate favourable long-term returns.